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ETH Ready For Liftoff Having Entered Oversold Territory
Recent developments indicate that Ethereum has entered oversold territory. This represents a bullish signal for the second-largest cryptocurrency by market cap, suggesting a possible price rally that could propel it as high as $6,000.
Crypto analyst Titan of Crypto highlighted in a post on X (formerly Twitter) that Ethereum is primed for a significant upward movement. He pointed out that historically, ETH tends to rally or experience a short-term pump whenever the relative strength index (RSI) is in or near oversold territory on the 3-day chart.
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While it’s uncertain whether this movement will be a sustained rally or a short-term pump, Titan of Crypto emphasized that an upward trend is imminent. The chart he shared illustrated that ETH could hit $6,000 if it rallies, while a short-term pump could see it reaching at least $3,000.
Sentiment and Market Dynamics
Crypto analyst Crypto Wolf also updated his followers on Ethereum’s status, noting that market sentiment is currently at a low point and interest in ETH is waning. He suggested that Ethereum is nearing a bottom, indicating that a bullish reversal is on the horizon once this bottom is established.
The chart accompanying Crypto Wolf’s analysis showed potential for Ethereum to rise to $2,900 upon recovery, with a target of $5,600 if it manages to break through the $3,900 resistance level. Another analyst, Poseidon, echoed these sentiments, suggesting that Ethereum is poised for expansion now that market manipulation seems to have ceased.
Poseidon’s analysis indicated that Ethereum must reclaim $2,600 to initiate an upward market shift, which could elevate ETH to $3,200 in the short term.
Spot Ethereum ETFs Have A Role To Play
Spot Ethereum ETFs are also expected to influence ETH’s potential price recovery. According to data from SoSo Value, these funds have experienced a cumulative net outflow of $562.31 million since their launch on July 23, exerting considerable selling pressure on ETH’s price.
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This selling pressure has been largely attributed to Grayscale’s Ethereum Trust (ETHE), similar to the pressure observed with Grayscale’s Bitcoin Trust (GBTC) following the launch of Spot Bitcoin ETFs. Bitcoin had dropped to as low as $38,000 before climbing to its current all-time high (ATH) of $73,000 once the selling pressure eased.
Therefore, Ethereum could also see a parabolic rally if a similar scenario unfolds, with easing selling pressure from Grayscale’s ETHE and increased inflows to other Spot Ethereum ETFs.
As of the most recent data, Ethereum is trading at approximately $2,320, reflecting a decline of over 3% in the past 24 hours, according to CoinMarketCap.
ETH price drops to $2,200 | Source: ETHUSDT on Tradingview.com
